WFDS Charge Off

[Anonymous]

I have one delinquent account (charge off) left so I call Wells Fargo Dealer Services with the plan to pay the balance ($1576) to close the account. The rep told me this was past the SOL and I would receive the car title within 45 days and a 1099c at the end of the year.

My questions:

1. What will this do to my report? Its been reporting change off monthly for several years. I'm guess I will not see any immediate impact up or down, but assuming it will go up as it continues to age.

2. Any way to get this removed? Currently scheduled to drop 10/2020.

[RobertEG]

Neither paying the debt nor expiration of SOL will result in removal of the reported charge-off prior to its normal credit report exclusion date of approx 7 years from the DOFD.

When a creditor provides updated reporting, either by an update that shows contined delinquency or by reporting paid, FICO treats that as an extension of the period of delinquency status thru that reporting date.  Thus, upon payment, you may see some score decrease due to that updated reporting.

However, after payment, there will be no further updated reporting of a delinquency status, so the effect of the CO will therafter begin to age.

The DOFD is apparently 10/2013.

If you seek removal of the CO prior to 10/2020, you can make a PFD offer before paying the debt.

Additionlly, if you are paying the entire amount, there is no cancellation of any portion of the debt, so there should be no 1099c from the creditor.

[Anonymous]

Any updates as to how this worked out for you? Currently going through a charge-off, paid in full report from WFDS. Not sure what to expect. Any insight would be great

[Anonymous]

Right now I'm just trying to goodwill it. No luck and not expecting any. Only advantage is i no longer show any outstanding balance and i have the title to the car. No score impact now but as time progress it will mean less. I will keep working at it as I'm not pressed to have it off, its just one of my last few negatives.